Pension Funds Begin to Sample
Emerging-Market Securities

In a trend that would have seemed unlikely a few years ago, a number of pension funds are spicing up their investments with emerging-market assets.

The volatile asset class long has had difficulty drawing money from conservative investors, and financial crises in Asia, Russia and Argentina have sent even those with the heartiest risk appetites running for the exits. Even now, managers say they're being careful not to overdo it with...